Writing Down Mortgages to Save the Housing Market
Following are three links I originally posted separately but that all address the same issue from different points of view. The topic addressed is foreclosures and their effect on the value of housing. This is important particularly in Florida where the economy is dependent on the health of the housing market.
The first article, published in USA Today, discusses how housing prices are falling even as consumer confidence rises. The second article, published by Bloomberg Businessweek, discusses how the continued large amount of foreclosures and defaults are driving down home values preventing the market from recovering. The third article, published by the Urban Land Institute, says the solution to this problem is to require large banks that received bail out funds to write down the principal on mortgages to eleminate negative equity. Among other things, this would prevent further defaults and promote the mobility of the work force decreasing unemployment.